Jul 23 2008
Full Disclosure
Today’s article also featured on SmarterMarkets
A little while ago, I participated in a research project establishing baselines for environmental legitimacy among large energy, pharmaceutical, and consumer packaged goods companies. The research team focused on a list of 150 organizations and tracked how often they disclosed the environmental consequences of their operations.
How much water did they use? How much waste was deposited in landfills? How much money did they invest in habitat reconstruction? There was a long list of issues we looked at; while some companies were very transparent, others had little to no interest in disclosure. When we looked deeper, we also found out that the companies who were closest to “full disclosure” actually performed better financially than those who didn’t report anything.
We weren’t surprised by this result, but many of the corporate managers were.
Yesterday I came across a different kind of disclosure, and I’m worried by what it means for the rest of us. By day I’m a mild-mannered marketer, but at night I transform into a mighty … publisher. Yes, my hobby isn’t as exciting as Superman’s or Batman’s, but still, I enjoy it. I own a publishing company that I work on part time, and yesterday I negotiated a deal with a new printer.
They were helpful throughout the entire process of filling out the application, the licensing agreements, and even the direct debit paperwork. They also offered me credit terms for my projects. I loved the ease of their system and the comparably low per-unit price they have when compared to the rest of the industry.
Then they asked for an additional set-up fee. It’s required up-front for each project and doesn’t vary on the size of the project or the timeliness of the printing job. While it’s not a large fee, it was never mentioned in any of their promotional materials, any of their pre-contract fee breakdown sheets, or referenced by any of their sales representatives.
Truly, finding out about the charge after I signed the contract and got ready to print my first project with them was disappointing. If it weren’t for the fact that I had already decided to pursue a long-term relationship with this company, the lack of full disclosure might have encouraged me to look elsewhere.
Does your company practice full disclosure? Every time, with every contract? What might it mean for your long-term success if you don’t?
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